Request for inputs - Hospitality industry - converting Alcohol to Non-Alcoholic Mocktail beverages

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May 30, 2026

by a searcher from University of Melbourne in Melbourne VIC, Australia

Hi everyone, I'm currently considering purchasing a beachfront seafood restaurant in a popular tourist location in Queensland. The business appears financially attractive, and I'm interested in submitting an offer. One aspect I'm assessing is that alcoholic beverages currently account for approximately 20% of total revenue. Due to personal and religious commitments, I would prefer not to sell alcohol and would instead replace the offering with premium non-alcoholic beverages, mocktails, specialty drinks, and similar alternatives. I'm seeking feedback from anyone who has experience operating, purchasing, or consulting for hospitality businesses that have removed alcohol from their menu or considered doing so. What should I expect - How significant the impact on overall sales and profitability? Will the non-alcoholic alternatives be able to recover some of the lost revenue? In a tourist-focused beachfront location, would removing alcohol be considered a major commercial risk? I'd appreciate hearing from anyone with firsthand experience or industry knowledge. Thank you.
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Reply by a professional-advisory
from University of Utah in Sandy, UT, USA
I would look for another business to buy. This one sounds great for someone who wants to operate a bar. Tighten up your buy box to disqualify vice spaces.
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Reply by a searcher
from University of Sydney in Sydney NSW, Australia
I’m assuming you mean the Gold Coast but it’s similar across the state. Not having alcohol in a destination like that is unfortunately a big risk. I’d expect the revenue from alcohol to be 2-3x less when replaced with non-alcoholic drinks. There’s also the risk of losing dinner bookings from groups who want to drink, high-spend celebrations and even functions. Your competition will also almost always be licensed venues which can complicate things too. Non-alcoholic alternatives can certainly work but I wouldn’t expect it to rival alcohol revenue at all. Ultimately, when valuing the business, you must take this into account and perhaps look for alternative locations where alcohol revenue is less significant.
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